Following months of almost daily clashes between Palestinians and Israeli police in Jerusalem's occupied eastern sector, the Aqsa unrest reached a boiling point following Wednesday night's wounding of the rabbi and the subsequent killing of the suspected Palestinian gunman.

Earlier Thursday, State Department spokeswoman Jen Psaki said that the Haram al-Sharif, which contains the mosque, “must be re-opened to Muslim worshippers,” and called for peace amid heightened tension on both sides.

“It is actually critical that all sides exercise restraint, refrain from provocative actions and rhetoric and preserve the status quo on the Haram al-Sharif/Temple Mount in word and in practice," she said.

According to officials from the Islamic Waqf which administers the compound, Thursday's closure was the first since Israel seized Arab east Jerusalem during the 1967 Six-Day War. The site has been highly sensitive since then, as it represents a holy place for both Palestinian Muslims and Israeli Jews.

Muslims see al-Aqsa represents the world's third holiest site while Jews refer to the area as Temple Mount, believing it to be the site of two Jewish temples in ancient times.

In September 2000, a visit to the site by controversial Israeli politician Ariel Sharon sparked what later became known as the "Second Intifada," a popular uprising against Israeli occupation in which thousands of Palestinians and Israelis were killed.